1. AppExchange Partner Program Terms Overview
May 22, 2007

2. Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the oral remarks that accompany it contain forward-looking statements the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.  All statements other than statements of historical fact could be deemed forward-looking, including any statements concerning new, planned or upgraded services or technology developments, any projections of subscriber growth, earnings, revenues or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief and statements about future customer contracts or future customer use of our services.
The risks and uncertainties referred to above include - but are not limited to - interruptions or delays in our service or our Web hosting; our ability to complete and successfully release new and improved versions of our on-demand platform and development environment; our new business model; problems integrating, launching or operating services based on newly acquired businesses or technologies, breach of our security measures; possible fluctuations in our operating results and rate of growth; the emerging market in which we operate; our relatively limited operating history; our ability to hire, retain and motivate our employees and manage our growth; competition; our ability to continue to release and gain customer acceptance of new and improved versions of our CRM service; unanticipated changes in our effective tax rate; fluctuations in the number of shares outstanding; the price of such shares; foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q for the fiscal quarter ended April 30, These documents are available on the SEC Filings section of the Investor Information section of our website at
Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all.  Customers who purchase our services should make purchase decisions based upon features that are currently available.  Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
But before we get started – first a brief word from our sponsor, the US government…SFDC is a publicly traded company on the NYSE. Our ticker symbol is CRM.
If for some reason you cannot read the entire safe harbor statement here, please visit our website.

3. Developing The Next Generation Of Salesforce.com’s
Rapid developer of innovation…..path for a new feature e.g. MSFT Exchange...what version to put it in, then IT needs to implement it

4. The Circle of On-Demand Success4

5. Growing the AppExchange in 2007 Platform & Go-to-Market Breakthroughs
2006
Apex & AppStore
Verticals & Beyond CRM Apps
Global Enterprise Adoption
Full ISV Spectrum
Formal Partner Programs
2007
AppExchange 1.0
CRM-centric Apps
Early US SMB Adopters
Smaller ISV Partners
Ad-hoc Partnerships

6. Joint Sales & Go-to-Market
Fueling Partner Success in 2007 Fully Integrating Partners to the Ecosystem
Partners
Awareness &
Education
Joint Sales & Go-to-Market
General
Marketing
Targeted
Demand
Generation
In 2006 – we marketed the AppExchange directory broadly without specific focus on apps/partners.
This year, we will enable partners to do targeted demand generation into our customer base and educate our customer facing employees with the goal of joint sales/go-to-market with our top partners.
29,000+ Customers

7. Different Ways to Achieve Same Goal Join the Ecosystem to Leverage Economies of Scale
AppExchange
DIY 
Immediate Access to Largest Global Market of On-Demand Customers 
Leverage Proven Marketing Methods
What would be your cost? 
Faster Sales Cycles 
Level Playing field based on Customer Success 
Immediate On-Demand Credibility (Customers, VC, etc.) 
Low-cost/High Quality Lead Generation 
Ongoing Technology Guidance & Support

8. What a Difference a Year Makes Unique programs to drive demand to your apps
This Year
Last Year 
N/A
Dedicated Category Leader 
N/A
Sales Education Roadshows 
“Top Partner” Matrix eligibility for SFDC Sales teams
N/A 
Targeted Marketing & Webinars to SFDC Customer base
N/A 
Access to Pre-Release Apps
N/A 
N/A
Success Story Participation

9. Partner Program Levels & Eligibility Democratizing ISV Success
AppExchange Basic
AppExchange Standard
AppExchange Premium1
Basic set of services to get started on the AppExchange
Enhanced services to grow your business on the AppExchange
Full suite of programs and tools to support an on-demand business on the AppExchange
ELIGIBILITY
Customer Deployments
100 Corporate or 10 Field
Customer Ratings
3.8 of 5
(Min 20 ratings)
Customer Interviews 3
Scheduled availability in Q3 CY07

10. Partner Program Benefits Programs & Tools for Developer/ISV Success
BASIC
STANDARD
PREMIUM
BUSINESS & TECHNICAL SUPPORT
Business Planning & Acct Mgt
Initial Review by PSM
Annual Review by PSM
Quarterly Review by PSM or Category Leader
Developer Edition & API Access 
Application Design
ADN + Review
TAC
Named TAC + PM
GO-TO-MARKET PROGRAMS
AppExchange.com leads
Event marketing eligibility 
Sponsored category listing
Preferred directory placement
Incubator eligibility
Joint PR activities
Targeted demand generation
Salesforce.com Awareness
Salesforce.com Engagement

11. Partner Program Requirements Aligned for Partner Success
BASIC
STANDARD
PREMIUM
Partner Referral Fee1 0%
10%
25%2
Annual Application Certification
Required
AppLabs Training Seats 1 2
Developer Support Packs $
Annual Min MDF Commitment3 $0
$20K
$50K
Salesforce.com Lead Referrals per Year
3 Corporate or 1 Field
6 Corporate or 2 Field
Referral fee % applies to annual committed net revenue for all transactions that occur within 12 months of customer acquisition.
Premium Partners must meet certain eligibility requirements including but not limited to minimum number of successful customer deployments.
Annual Market Development Funds (MDF) consist of salesforce.com events and sponsorship activities per calendar year

12. % First-Year & Ongoing Revenue
Complete Set of Programs for ISV Success Pay-for-Performance Referral Fee Model
Partner Program Level
% First-Year Revenue1
% First-Year & Ongoing Revenue
Basic 0%
Standard (Available Now)
10%
Premium2 (Scheduled availability in Q3 CY07)
25%
Optional Add-On Services
AppStore Checkout (Scheduled availability in Q4 CY07)
Orders, Renewals, Invoicing, Collection, Analysis
20%
Referral fee % applies to annual contract value for all transactions that occur within 12 months of customer acquisition.
Premium Partners must meet certain eligibility requirements including but not limited to minimum number of successful customer deployments.

13. Introducing AppExchange Category Leaders Connecting customers and employees with the right app & partner
Judy Loehr
Sales & Marketing
Steve White
GEM Accts & Field
Matt Panning
SSS & PSA
Darren Cunningham
Analytics & Data Management
Jeff Yoshimura
Financial Svcs & Verticals
Raghu Gnanasekaran
Beyond CRM

14. Introducing the AppExchange Partner Matrix
Only Standard Partners apply
Must meet unique Category Leader criteria by segment
EXAMPLE ONLY

15. Marketing Opportunities for Standard Partners*
Preferred AppExchange.com placement for standard partner applications
Targeted marketing campaigns and webinars
6 partner-focused webinars planned for Q2
Main stage participation at Salesforce events
Of course, it must be a great app!
* Timing and scope still being determined

16. Includes any deals referred pre-agreement date
WHAT deals do I pay Referral Fees on? Standard Partner Program began 2/1/2007
Includes any deals referred pre-agreement date
Pay on any referred deals closing after Effective Date
Agreement Effective Date
REFERRAL FEE
REFERRAL
Any deal(s) or prospects originated from Salesforce.com via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months.
% of Annual Contract Value of any referred opportunity for 12 months beginning with 1st customer purchase.

17. WHAT ISN’T a Referral? No referral if oppty is already in your pipeline within past 60 days
Partner cold calls customer contact & establishes pipeline oppty
Customer visits AppExchange.com and submits lead info
Customer makes purchase
NO REFERRAL FEE
March 1
April 1
April 25
Customer contact attends partner webinar. No oppty.
Customer visits AppExchange.com & submits lead info
Customer makes purchase
TRIGGERS REFERRAL FEE
March 1
June 15
July 1

18. HOW long are Referrals active
HOW long are Referrals active? Referrals can become “live” opportunities for 12 months
February 1, 2006
January 31, 2007
Referral is LIVE for 12 months
If customer purchases on….
REFERRAL
January 15, 2007 – FEE APPLIES
Any deal(s) or prospects passed from Salesforce.com via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months.
February 15, 2007 – NO FEE

19. HOW do Referrals become Customers?
1ST Customer Purchase from referral triggers “live” Opportunity
Date of 1st Referred Customer Purchase
Referral with past 12 months
Customer Opportunity is now “live” for 12 months – Referral fee applies during this period

20. Scenario 1: Customer signs to one year contract
In this example the Customer signs a one year contract and you are paid up front for the entire year- a total of $120
You are responsible only for one $12 payment to SFDC for the quarter the contract was signed
$120 paid up front * 10% referral= $12
Customer Signs Contract for 1 year and pays you $120
Pay $12 to SFDC (Net 45)
End of Quarter
Feb 1
March 31
May 15

21. Scenario 2: Customer signs to one Year contract w/ Monthly payments
Your customer signs a ONE YEAR Contract and agrees to pay you on a monthly basis
The contract is still for a one year term and you will pay SFDC only one payment of $12 for the Quarter the deal was closed
$10 per month= $120 * 10% = $12
Customer Signs Contract for 1 year and pays you $10 (for Feb)
Pay $12 to SFDC (Net 45) for total ACV
Customer pays you $10
Customer pays you $10
Customer pays you $10
Feb 1
March 31
April 30
May 15
May 31

22. Scenario 3: Customer signs to one Quarter contract w/ Quarterly Payments
The customer initially signs a contract for a term of one quarter. They then extend your service for another quarter and finally renew for an entire year.
The opportunity is alive for one year after signing the initial contract. This means that any renewal contracts are paid in the quarter they are renewed.
The payment is always attributed to the quarter the contract is signed.
In this example, the contract is renewed for one year but the opportunity is only alive for 6 more months. You would pay SFDC only half of the contract value for the six months remaining in the live opportunity.
Customer Signs new contract for Q2 and pays you $30
Customer Signs new contract for One year starting Q3 and pays you $120
Customer Signs contract for Q1 and pays you $30
Pay $3 to SFDC (Net 45) for total Q1 ACV
Pay $3 to SFDC (Net 45) for total Q2 ACV
Pay $6 to SFDC (Net 45) for total Q3 ACV Q1
Q1 + 45 Q2
Q2 + 45 Q3
Q3 + 45

23. Scenario 4: Pay as you go Q1 Q2 + 45 Q2 Q2 + 45 Q3 Q3 + 45
The application uses a pay as you go model for example an marketing application where you pay per sent
The customer pays you X per quarter and you pay SFDC 10% of X for that quarter
Payments will always be made a quarterly basis for all customers who paid you during that quarter
Pay $3 to SFDC (Net 45) for total Q1 ACV
Pay $7 to SFDC (Net 45) for total Q3 ACV
Pay $5 to SFDC (Net 45) for total Q2 ACV
Customer pays you $30 for application
Customer pays you $70 for Application
Customer pays you $50 for Application Q1
Q2 + 45 Q2
Q2 + 45 Q3
Q3 + 45

24. WHAT about renewals within 1st 12 months
WHAT about renewals within 1st 12 months? Pay referral fee up until 12 months for new customer renewals
REFERRAL FEES APPLY DURING 12 MON PERIOD
New Deal
Renewal
Renewal Deal
February 1, 2006
January 31, 2007
Opportunity is LIVE for 12 months from 1st purchase

25. (Up-sell/Cross-sell)
WHAT about add-on deals for new referred customers? Only on NEW and ADD-ON business during 12 month period
REFERRAL FEES APPLY DURING 12 MON PERIOD
Add-on Deal
(Up-sell/Cross-sell)
New Deal
Prof Svc Deal
Renewal Deal
February 1, 2006
January 31, 2007
Opportunity is LIVE for 12 months from 1st purchase

26. WHAT about referred add-on at existing customers
WHAT about referred add-on at existing customers? Only on business sourced by salesforce.com
Sign
Partner
Agreement
Add-on Deal
(Salesforce.com Sourced)
Existing
Customer
Add-on Deal (You Source)
Add-on Deal (You Source)
Feb 1, 1995
Apr 1, 2007
Mar 31 , 2008
REFERRAL FEES APPLY DURING 12 MON PERIOD

27. WHAT if I OEM/Resell another product
WHAT if I OEM/Resell another product? Pay only on your gross margin for OEM products
$1,000
Total Revenue from Customer
$600
OEM Royalty Cost
$400
Gross Margin on OEM
Pay Referral Fee on this

28. Do I pay fees on multi-year contracts
Do I pay fees on multi-year contracts? Pay only on 1st Year Contract Value
Pay Referral Fee only
on 1st Year Revenue
2-year Contract
March 1, 2006
March 1, 2007
March 1, 2008

29. WHEN do I pay referral fees
WHEN do I pay referral fees? Pay only on deals closed during the quarter
Referral fees due (Net 45)
End of Quarter
Referred Deal X closes 3/1
Referred Deal Y closes 3/15
Feb 15
March 15
March 31
May 15

30. What if a Customer cancels
What if a Customer cancels? Credit back pro-rated fee against future fee payments
Customer X contract expires 12/31
1-Year Referred Deal X closes 1/1
Customer X cancels 6/30
Jan 1
June 30
Dec 31
Pay Referral Fee for
pre-cancellation period
Credit Referral Fee for post-cancellation period against other fee payments in future quarters

31. Customer Purchase Date Payment Due Date to Salesforce.com
WHEN do I pay Referral Fees? Self-generated Quarterly reports & Payments
Calendar Quarter
Customer Purchase Date
Payment Due Date to Salesforce.com Q1
February 1 – March 31
May 15, 2007 Q2
April 1 – June 30
August 14, 2007 Q3
July 1 – September 30
November 14, 2007 Q4
October 1 – December 31
February 14, 2008
Send referral report (download report off the AppExchange) with payment to Report and payment is due 45 days after the calendar quarter end.
Payment Methods accepted: Credit Card or Wire Transfer

32. COMPARING EBAY & APPEXCHANGE
Initial Listing Fee
Certification Fee
Transaction Fee Upon Close
Referral Fee Upon Close
Ad Format Fees
Sponsoring Marketing Events
SEM/Affiliate Advertising Fees
Sponsoring Sales Awareness/Education
Listing Upgrade Fees
AppExchange Sponsored Listing
Picture Services Fees
Premium Listing
Seller Tools monthly Fees
Developer Support Packs
eBay Store monthly fee
Premium Partner Tier (25% referral)
eBay University
Incubator